Daily Brief - 3 Apr 2024

Tesla's big miss is a rough start to 2024 for the EV giant

Tesla faced a surprisingly tough start to the year, delivering far fewer cars than anyone expected, marking its biggest miss in seven years. The company's shares took a dive, dropping by nearly 5% and contributing to a 33% slide in 2024, making it one of the poorest performers in the S&P 500.

Despite cutting prices, high interest rates have made Tesla cars harder to buy, and issues like factory disruptions and controversial online posts by Elon Musk haven't helped. For the first time since 2020, Tesla sold fewer cars than it did the year before, an 8.5% drop.

They still managed to produce more cars than they sold, hinting at a bigger problem with demand. Despite these hurdles, Tesla remains the top seller of electric vehicles, beating out China's BYD.

Goldman Sachs invests in Kennedy Lewis for a private credit edge

Goldman Sachs' Petershill unit is making waves by buying a minority stake in Kennedy Lewis Investment Management, a sharp move aiming for bigger gains in private assets. They're getting around 40% of the firm and a nice slice of the profits from its funds.

This deal is part of a hot trend where big finance players are eagerly grabbing parts of private investment firms to cash in on more rewarding markets. Azimut Group is also smiling all the way to the bank, pocketing $225 million from selling their piece of Kennedy Lewis.

Despite the new arrangement, the founders of Kennedy Lewis are keeping their hands firmly on the wheel. This partnership highlights Goldman’s strategy to diversify and deepen its investment pool, promising exciting times ahead in the finance world.

Office vacancy rate nears 20% to set fresh record, Moody’s says

The US office sector is feeling the pinch as vacancy rates hit a new record of 19.8%, according to Moody's latest report. This slight rise from the previous quarter reflects ongoing changes in work habits, with more companies opting for hybrid models.

Despite this uptick, Moody's views the commercial real estate market as stable for now. High interest rates and the shift to hybrid work are challenging the sector, pushing vacancy rates beyond the highs of the late '80s and early '90s.

Yet, there's a silver lining with positive economic signs helping to keep things from worsening. As the office landscape evolves, success may depend on location and integration with vibrant, mixed-use areas.